The U.S. Calls on Digital Asset Firms to Prevent Illicit Finance to Terrorists
The U.S. Deputy Treasury Secretary, Wally Adeyemo, has stated that some firms in the digital asset sector are not doing enough to stop the flow of illicit finance to terrorist organizations. Speaking at the Royal United Services Institute in London, Adeyemo emphasized the importance of financial institutions and digital asset companies taking steps to prevent terrorists from accessing resources.
He acknowledged that while some firms wish to innovate without considering the consequences, including protecting against illicit finance, it is the expectation of the U.S. that they will act accordingly. Adeyemo warned that if these entities fail to prevent illicit financial flows, the United States and its partners will intervene using all available tools.
U.S. Sanctions Following Hamas Attacks
In response to the recent attacks by Hamas, the U.S. has imposed a second round of sanctions on the militant group. This includes targeting a Hamas official in Iran and members of Iran’s Islamic Revolutionary Guard Corps. The initial set of sanctions aimed to disrupt funding for Hamas following its attack on communities in southern Israel.
Officials in the U.S. have called for a crackdown on the use of cryptocurrency for terrorism financing and evading sanctions. Senate Banking Committee Chair, Sherrod Brown, highlighted how crypto platforms often lack common-sense protections like know your customer rules, making it easier for illicit finance to occur. Brown emphasized that some crypto services and tokens enable anonymous transactions, hindering law enforcement efforts.
Hot Take: Strengthening Measures Against Illicit Finance
The U.S. government’s call for digital asset firms and financial institutions to prevent illicit finance is a significant step towards strengthening global efforts against terrorism financing. By urging these entities to take responsibility and implement robust measures, the U.S. aims to disrupt the flow of funds to terrorist organizations.
While the crypto industry argues that figures on crypto fundraising by terrorists are being misinterpreted, it is crucial to prioritize safeguards and prevent illicit activities. Striking a balance between innovation and security is essential in building trust and ensuring the long-term sustainability of the digital asset sector.
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